Mexico Reopens; Puebla Resists

26 May 2020 Blog
Authors: Roberto Arena Reyes Retana Daniel Aranda Andres Alvarez Juan Carlos De Lucio Carrasco
Published To: Coronavirus Resource Center:Back to Business Dashboard Insights Manufacturing Industry Advisor

The Government of the State of Puebla, home to Volkswagen, Audi and a number Tier 1 and Tier 2 automotive suppliers, has issued a “Decree establishing that there are no conditions in the State of Puebla to restart activities in the automotive and construction industries.” This flies in the face of the recent announcement by the Federal government in Mexico, which classifies the automotive industry and other sectors in Mexico as “essential” and permits these industries to restart subject to satisfying certain “health and safety protocols” recently communicated by the Mexican government.  More specifically, on May 22, 2020, the State of Puebla, in direct controversy with the Federal government, decided that there are still no conditions in the State to reopen the automotive and construction industries, providing for an implied prohibition to reopen facilities.

If you have operations in the State of Puebla, there are plenty of reasons to challenge the validity and enforceability of the Decree, from being discriminatory to invading the Federal Government’s sphere, including lack of appropriate merits and grounds. 

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